After reaching an important support level, Generac Holdings (GNRC) could be a good stock pick from a technical perspective. GNRC surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.
Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
GNRC could be on the verge of another rally after moving 22.3% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.
Looking at GNRC's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 7 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors may want to watch GNRC for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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Generac Holdings Inc. (GNRC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).